How to Avail the Best Car Insurance at Affordable Premium Rates?
In India, insurance firms offer a multitude of car insurance policies that appeal to policyholders' unique requirements; however, it can be difficult to select the right policy. Insurance companies sell various plans with different features and these plans come at different prices. Therefore, before choosing the right insurance policy to better fit your needs, you must do your research well.
Once you are aware of the type of car insurance policy you need, comparing the policies from various insurance providers before making the buying decision is a good idea. you must compare the policies concerning the sum insured, inclusion and exclusion of the policy, form of add-ons provided, claim procedure, deductibles, etc. For the premium, you pay, pick a cost-effective policy.
Factors Determining the Premium
When you buy a car insurance policy, you have to pay premiums on the same. The premium of your car insurance policy depends on the following factors:
- Model, make, and the variant of the car that determines its value. The higher the car price, the higher will be the premium.
- The age of the vehicle, which, due to depreciation, decreases the value of the car. The older the vehicle, the lower its worth, and therefore the car insurance policy premium will be.
- Third-party policies have cheap car insurance premiums, whereas comprehensive policies are costly.
- The car's fuel variant determines the premium value. The higher the value, the higher the premium.
- City of registration - metro cities have higher premium rates than non-metro cities
- There is an additional premium for each add-on. The premium will increase if you choose one or more add-ons.
- There are distinct types of premium discounts available. The higher the discounts you receive, the lower the car insurance premium would be.
Points to Keep in Mind While Choosing the Best Car Insurance with Affordable Premium
- The cost of repairs after incidents would be shared between you and the insurer by going for voluntary deductibles, thereby ensuring you would have to pay a lower premium sum.
- Opt for a comprehensive policy. It will not only cover you and your vehicle but will also take care of third-party claims for damage caused to your car or body.
- Understand the Insured declared value (IDV) of your car. Under the car insurance contract, the IDV is the maximum amount that can be claimed.
- Look for car insurance providers who provide the facility for cashless claims as it is useful in emergencies.
- Check the no-claim bonus (NCB). The NCB will offer incentives, such as a decrease in your premium amount if you do not make any claims over a year.
- Ensure you have a hassle-free claims process, as such, the Claim Settlement Ratio (CSR) of a car insurance provider must be reviewed.
- To understand what is protected/covered, how much coverage is given, what are the exclusions, inclusions, etc., you have to go through the policy manual.
- The customer service provided by the insurer is essential when you buy a car insurance policy to ensure that you don't have any issues in the future.
Also, Read
Why Is It Important to Renew Car Insurance on Time?
Things to Consider When Buying Car Insurance in India
Bottom Line
With the number of car insurers higher than ever and offering a plethora of plans, selecting the one that best fits your needs and convenience is critical. There will be various insurance firms providing various coverage and premium rates. To get the best premium rates for your car, compare the insurance plans given by the various insurance plans considering the above factors.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
